San Diego Real Estate Market Update – November 2020
San Diego Real Estate Market Update – November 2020November 23rd, 2020
San Diego housing prices continue to rise, with a sharp increase in the most recent months. Find out why and if we are going to see foreclosures and a housing market crash below.
Prices continue to rise and there is high buyer demand since COVID-19 due to:
- Low inventory
- Low interest rates
- Delayed start due to shutdowns
- Median Sales Price: $647,000
- SP/OLP Ratio: 100%
- Days on Market: 7
- Inventory: 1.6 months
I am often asked if there will be a wave of foreclosures and if the market is going to crash.
First, 42% of homes nationally are owned free and clear. The average homeowner has $177,000 in equity and fewer than 1M mortgage holders owe more than their home is worth.
In CA, 94.9% of mortgage holders are in good standing. Of the remaining mortgages, 5.0% are delinquent and 0.1% is in foreclosure and the number of delinquencies is going down.
Housing prices are rising due to lack of inventory. Compare where we were before and during the crash from where we are today. New listing supply is not keeping up with demand. There will be some foreclosures that hit the market, but it will be minimal because owners have high equity and short sales will be nominal. Even if/when those distressed properties come on the market, there are many dormant buyers waiting to pounce on the new supply. Prices will hold steady or continue to rise.
Watch my video below to learn more.
Featured Charts for November 2020
Charts and Graphs
Overall - All Property Types
Median Sales Price
Sales Price to Original List Price Ratio
Days on Market
Median Sales Prices by Type and # of Bedrooms
Single Family Homes
All info deemed reliable but not guaranteed